Since 1987, Brinker Capital has provided investment solutions based on ideas generated from listening to the needs of advisors. From being a pioneer of multi-asset class investments to using behavioral finance to manage the emotions of investing, our disciplined investment approach is the key to helping investors achieve better outcomes.

Tag Archives: independence

Good money management is a fine example of a skill best learned young. The earlier your child gains control over their financial world, the more time your child has to make thoughtful decisions that bring them closer to financial freedom and the fulfillment of their life goals.

You can guide your child towards financial independence by imparting these valuable lessons:

Promote Him/Her to Account Manager

The best way to encourage financial responsibility is to make your child responsible for their financial decisions.

When your child is young, you most likely make all of the financial decisions for them. You probably opened their first bank account when he or she was just an infant. You instruct when to make a deposit and when money should be withdrawn.

At some point, well before the child reaches the age of maturity and can legally take independent action on the account, you should begin to cede some control. The child should start to take on the responsibility that comes with managing the account, getting comfortable with the decision-making needed to guide financial growth. After all, this is the money that will fund future whims.

Once children feel ownership over some pool of money, it should be the source of funding for non-essential items. As the account manager, the child then must decide whether he or she wants something badly enough to take money out of their account. If money is spent from the account, your child will have to figure out how to replenish it. Discretionary purchases exceeding the amount available in the account should be discouraged, to emphasize the notion that money is a limited resource.

Let Consequences Teach

There comes a time in a young adult’s life when they must live with the consequences of their decisions and circumstances. For example, often young drivers fail to consider insurance, fuel, and routine maintenance when they calculate how much they can afford to spend on a car. Increased expenses are a natural consequence of car ownership. Sometimes, these overlooked costs dawn on the teen only after the uninsured car is in the driveway, with an empty gas tank. This is a prime time for natural consequences teach the lesson. If you swoop in to protect your child from a painful lesson, they learn an entirely different lesson. They learn that when their money runs out, they simply need to tap into yours.

Encouraging Surfing

Before your child makes a purchase, insist upon comparison shopping. Encourage your son or daughter to surf the internet to explore the best deals available.

Make Them Honor Financial Commitments

Teenagers can come up with all kinds of creative excuses for not following through. Backing out of commitments, especially financial commitments, should be non-negotiable. If your child asks you to float them some money for an impulse purchase, make them pay you back. If your child agrees to shovel a driveway or babysit a neighbor, make sure they show up, on time and ready to work.

Set Guidelines

Before your child receives his or her first paycheck, you should talk about the importance of saving for both short- and long-term goals. Set the expectation that each a certain percentage of pay period should go towards meeting those objectives.

Give Incentives

Some children seem hardwired to spend their money as quickly as it is earned while others save every penny. To encourage saving, consider providing financial incentives. For example, you may deposit $10 for every $100 your child puts in the bank.

Give Them a Peek

Many families don’t talk about money. Parents often worry their child will misconstrue the information, share it with others, become complacent, or endure an unnecessary burden. When you explain certain aspects of your financial life to your child, however, it provides context and clarity to your decisions. It also allows you to talk about what money means to you. Nothing makes an example clearer for a child as when you explain trade-offs you have made in your life, like buying a smaller house closer to work, so you spend less time commuting and more time with the family.

The Brinker Capital Wealth Advisory team delivers exceptional service and support to meet the unique wealth management needs of high-net-worth and ultra-high-net-worth investors, family offices, institutions, and endowments.The views expressed are those of Brinker Capital and are not intended as investment advice or recommendation. For informational purposes only. Holdings are subject to change. Brinker Capital, Inc., a Registered Investment Advisor.

On this week’s podcast (recorded March 1, 2016), Stuart takes to the mic to discuss what the impact could look like should Britain exit the European Union (EU).

Quick takes:

On June 23, the United Kingdom (UK) will hold a referendum on whether to remain or exit the EU.

The consensus leans towards the UK staying put, but polls in recent general elections were wrong.

The UK has more to lose from “Brexit” than the EU, but it could also highlight other cracks in Europe.

Markets have reacted by selling off UK markets, particularly the British pound, in light of the impending uncertainty and potential adverse impact of a “yes” for Brexit. So what potential impact could there be for the UK?

Direct trade – the EU accounts for roughly half of UK imports and exports; potentially three million jobs at stake¹.

Scottish independence – Scotland is more sympathetic to the EU and could seek another referendum for their independence from Britain; they currently make up roughly 40% of UK’s GDP.

Multinational headquarters – could start vacating out of London; banking sector could reduce operations in UK and uproot to Frankfort or Paris, as well as Asia.

What’s the potential impact to the EU?

Trade – while not as impactful, a UK departure is still negative especially with tepid economic growth in Europe

Political risks – France elections in 2017 could see more impetus to opposition party of Marine Le Pen, which is of an anti-Europe mindset; Catalonian desire to secede from Spain could be rekindled

Economics – Europe’s focus on broader economic and national security issues could become complicated

The views expressed are those of Brinker Capital and are not intended as investment advice or recommendation. For informational purposes only. Holdings are subject to change. Brinker Capital, a Registered Investment Advisor.

By now, many of you are aware of Curian Capital’s decision to exit the fee-based business to focus on the core activities of Jackson National Life Insurance Company. I am sure there are many strong, global, corporate considerations that led them to this determination; nonetheless, it does not alleviate the disruption to impacted financial advisors and investors.

This situation reminds me of the motivations that led me to create Brinker Capital 28 years ago. When our original parent company, Mutual Benefit, floundered in 1991, it was part of an unfortunate reoccurrence taking place in the financial service industry. Venerable names like E.F. Hutton, Kidder Peabody and Prudential Bache were also falling by the wayside. I was determined to make Brinker Capital different.

That is why I built an organization with the laser focus of helping advisors and investors succeed by delivering a premier investment experience that would allow them to achieve the outcomes that they were seeking. I surrounded myself with professionals who were committed to this same vision, and I’m proud that six of the eight founders are still here today and further, that over 40% percent of my employees have been here for over 10 years.

Brinker Capital is 100% employee-owned. That has allowed us to make thoughtful, long-range decisions without outside ownership staring over our shoulder. We are proud of our independence and will continue to be independent. Independence empowers Brinker Capital to continue to build this great organization that for 28 years has, and always will, put the advisor and investor first.

I, along with my colleagues, will continue to provide the best in investment management and advisor support.

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Brinker Capital provides this communication as a matter of general information. Portfolio managers at Brinker Capital make investment decisions in accordance with specific client guidelines and restrictions. As a result, client accounts may differ in strategy and composition from the information presented herein. Any facts and statistics quoted are from sources believed to be reliable, but they may be incomplete or condensed and we do not guarantee their accuracy. This communication is not an offer or solicitation to purchase or sell any security, and it is not a research report. Individuals should consult with a qualified financial professional before making any investment decisions.